The Jury Is Still Out on the Impact of ESG Disclosure on U.S. Oil & Gas Producers
Article from: OGEL 5 (2020), in Environmental, Social and Governance (ESG)
Introduction
This article calls into question the impact ESG pressure has on U.S. majors, like Exxon, Chevron, ConocoPhillips, and their ilk. Nonfinancial factors contained in ESG disclosures are presumed to be risks salient to long-term value. Rather, the assertion that such disclosures are factually triggering change in the direction of these firms is what this article disputes; sophisticated managers at the U.S. majors are instead reacting to geopolitical and economic realities using their legally protected business judgment. At most, ESG disclosures may have become part of the fiduciary duties ...